The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-09
THE c., II. & D. SUES M'KEEN
Judge Gresham Is Asked to Restrain
Him from Selling Vandalia Stock,
And Temporary Injunction Is Granted
History of the Deal-lyes Goes to Terre
Haute to Consult with Mckeen.


vicinity CT the United States court-rooms yes
serday morning. Mr.. c. w. Fairbanks appeared
20 have something important on his mind, and
subsequent developments showed that his
appearance was not deceptive. He and Ramsey
& Maxwell fled suit on behalf of the Gin
einnati. Hamilton & Dayton Railway Company
against w. r. McKeen, of Terre Haute, asking
IN injunction against the sale of certain stock.
Judges Gresham and Wood got together, and
after hearing the bill granted a temporary
injunction. Marshall Hawkins left at noon for
Terre Haute to serve the papers. The com plant
meanwhile was Withdrawn from file until 3
o'clock in the afternoon, when Hawkins tele-
grsphed that he had service.
The bill charges that prior to June 4. 1887,
Henry S. Ives. who was at the time vice -presi-
dent of the c.. Fl. & D.. received authority
from the directors of that company to purchase.
as trustee for that company, 90 900 shares of the
stock Of the Terre Haute & Indianapolis, a cor
poration which has less than 40 900 shares in its
sapital stock. Of the par value of $50 each, and
10 pay therefor not to exceed 800 per share
that McKeen, having full knowledge of the
lcope of Ivess authority, and of the action of
she C.. Ii. & d. directors sold to Ives. as trustee
Tor the c., FL. & D., IL. 160 shares of r. FL. & I.
Itock at 800 per share, amounting to 81 116 900.
and Ives paid to the defendant on account of
The purchase $3.50, 500. leaving balance due Of
s226500 Ives also purchased at the same time
rom the T. H. & l. Railroad Company, through
McKeen as president, s,S40 shares of the T. Fl.
6 l. stock-which stock belonged to the r. Fl.
& L.. and stood in the name of President Me-
Keen rs trustee-at $62 so per share, amounting
10 1852. 500. and paid therefor on behalf of the
plaintiff 1852, 500. AS part of this transac ton,
and in consideration of the sale by President
MAX - -
unknown to the plaintiff, agreed to pay to Nc
Keen, individually 20 per cent. of the amount
Of the stock so sold by him president-tbe
sum of 1881. 500-and further to purchase from
McKeen. individually, 4. 446 shares at the par
value or $50 each; of the stock of the Terre
Haute & Logansport Railroad Company at 80
per cent, Sill, 150, which last mentioned stock
was of little value. To cover the sum of
1881 $780, Sill, $50 and 1925 500, the last amount
being the balance really due on the purchase OF
the IL. lou shares OF Terre Haute & Indianapolis
stock, Ives executed his note trustee to the
rider of McKeen, dated Jan. 4, 1887, payable
1t the option of Ives on or before six months, for
the sum of $669, $50. with per cent. interest,
and delivered to Mckeen, as collateral security
for the note, IL $50 shares of stock of the Terre
Haute & Indianapolis and tae 4, 446 shares of
Ferre Hante g Logansport stock, with authori-
81 TO McKeen to sell the stock after default in
ihe pay ment of the note, without notice.
The plaintiff charges that the defendant knew
that Ives had no authority to purchase the Terrs
Haute & LoRansport stock for account Of
the c., Ell. 81 D., nor to pledge the IL 160 shares
II the stock of the [. I'll. & l., or any part there
Of, account OF the purchase of the stock of
the T. II. e. l.. The defendant now has the H.
$50 shares of the T. H. & stock in his posses
sion, and claims TO hold the same as collateral
security for the note of 1868, $50.
The bill further charges that Ives pretended
to the plaintiff that all of the Z. Fl. & l. stock
heretofore mentioned-l1.1 60 shares and $50
shares-had been purchased by Ives at 500 per
share, and the plaintiff has believed until re-
Gently. The real indebtedness, the plaintiff
AYERS is s226.500. with months interest at
LS4A r. IL
ing pay, and has offered to pay
upon the return OF the H. 100 shares of T. II. &c
L stock The defendant refuses to accept. how
ever or to deliver to the plaintiff the stock, and
threatens to Immediately sell the stock to some
third person who may not have notice of the
rights of the plaintiff upon pretense that the
balance due the defendant is 5000, 150. On this
statement of fact the bill asks q temporary re-
straining order TO prevent Mr.. McKeen from dis
posing OF the ll.l6o shares OF the 7. Il; l.
stock, and further prays that. upon final hear
Ing. the defendant be required either to accept
from the plaintiff $500, with interest in full
and final payment. and to cancel the note
against plaintiff and TO deliver up the II. 160
shares of stock, that the defendant be re-
quired TO cancel the note and return to the
plaintiff the sum of $685., 800, with interest
After considering the BILL and consulting with
Judge Woods. Judge Grsham granted order
restraining the defendant from in any way dis
posing of the IL, I60 shares of T.. Fl. & l. stock,
and set the case for further hearing on Dec %
1887.
On tie came train that bore Marshal Hawkins
to Terre Haute, by strange coincidence, Mr..
Henry S. Ives was passenger. He was travel
ing in the uuassuming style of who has
to pay his fare. instead of a special car and a
guard, as he was wont to when he figured as the
Napoleon OF finance. He had a ticket for Kan
sas City, and stated that he was bound for that
point
The complaint. as presented. charges only un-
authorized action on the part of Ives as vice
president, with knowledge of the same on the
part of McKeeu. It originally charged fraud,
averring that Ives and McKeen had made an
a~~4% d. -.
per cont of the purchase money of the s, $40
shares charged to have been paid to McKeen--
but this allegation was stricken out before the
sill was filed.
Day before yesterday several of the c. H e.
D. officials called on Mr.. Mckeen, at Terre
Haute. and tried to make arrangement
ed as saying in interview that nothing was
laid 60 him by them in regard to paying the
notes. that, in fact, he did not understand what
she gentlemen came for. He said that Ives had
forfeited the money laid. amounting more
than 5000, 600, well as the hypothecated stock
The visitors. Messrs Dexter. Hoffer and Max
WELL left for Cincinnati at midnight.
Ives in Consultation with MIR. McKeen
lrecial TO the indianapolis Journal
TERRE HAUTE. Ind, Dec 8-United States
Marshal Hawkins served notice on President
of the Terre Haute & Indianapolis
company, this afternoon, OF the granting of the
temporary restraining order issued by Judge
Gresham. at Indianapolis. against disposal of
he stock of that company held By him as Sc
;nrity the note for $669, 500 given by Ives
md which went by default in New York
The complaint alleges that Mr.
dcKeen may sell the stock to some
hird party. It be said on the highest
authority that the purpose is to keep the stock |
sere. and that the Vsndaia road is not likely to
BASS out of the Mckeen control. 1t is the inten-
ion to operate the road, and there is no prob |
ability of Its passing into the hands of a third |
party. Mr. Mckeen has desire to dispose of |
lis interest, which is cow even larger than it |
'ver was. The note given by Ives was signed |
Henry S. Ives. Trustee" In the trade |
here legal connection of the Cincin- |
,ati. Hamilton e Dayton company. the |
tote not having been given by Ives as trustee |
or that company. Ives never claimed that he
Icted such, and now saws he did not It
axes two to make a trade, and the c.. H. & d.
lid not appear one of the two Whatever
resolution may have been adopted by the c., H.